John Schiefer, security consultant, admits to fraud charges
Photo by: Billaday
John Schiefer of Los Angeles, who worked in 3G Communications, a security firm, and also offered his services as an internet security consultant, formally admitted on 18 April to federal charges of fraud. The charges were for using protected computers to conduct fraud, disclosing illegally acquired electronic communications, bank fraud, and wire fraud.
US Assistant Attorney Mark C. Krause, was livid when Schiefer agreed November last year to plead guilty to charges:
“John Schiefer was an information security professional who betrayed the trust that both his employer and society placed in him. (…) he was infecting people’s computers, putting wiretap programs on them, catching people’s user names and passwords, and forcing the infected computers to disgorge the most confidential banking information, and then encouraging juveniles to use this information to steal people’s money”
Schiefer used his expertise to create a malicious code that sabotaged security of online computers and enabled them to be remote controlled when infected. Computers of internet users tainted with this code transmitted their confidential financial information like password information of PayPal and bank accounts to Schiefer and his associates.
He used this information to purchase goods and services online. Further, he also shared this stolen information with others making legitimate owners of the identities more vulnerable to theft.
The code specially targeted computers using MSWindows. It was able to unlock and gain access to a secure location called Protected Store or PStore in user computers using this operating system. Even though data was stored here in an encrypted form, Schiefer’s code was able to collect and decipher the data to reveal it in its unencrypted state.
Schiefer also admitted to charges of committing scam on a Dutch client company. He had enlisted as a consultant with Simpel Internet, a Dutch advertising firm, and contracted to download the company’s software onto user computers who wanted and had agreed to such downloads. Schiefer, downloaded the software randomly instead, and later collected the payment for this work from the company.
Schiefer was expected to profess his guilt last year itself. However, it finally came through last month.
He is now scheduled to be sentenced on 20 August this year.
Source: DailyBreeze
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